In addition to sizable gains, there was also very little market volatility in 2017. The S&P 500 only had 8 days when it lost or gained 1% or more. In 2016, the index had 48 days with at least 1% movement, and 2015 had 71 such days.

With high growth and low volatility, it’s little wonder that consumer confidence has reached its highest levels in 17 years. However, considering we are almost 9 years into this historic bull market, can the growth continue? Let’s take a look at a few economic indicators to examine where we are and what might be on the horizon.

Economic Highlights

Gross Domestic Product: Economic growth picked up in the 2nd and 3rd quarters, and analysts believe the expansion could continue in 2018.

Inflation: While inflation is below the Federal Reserve’s 2% goal, the most recent readings show a healthy increase. If inflation continues on this path, the Fed will likely continue to slowly increase interest rates in 2018.

Tax Changes in 2018

Many people are wondering how the new tax plan will affect markets and the economy in 2018.

On January 1, a number of changes went into effect, including new tax brackets for citizens and a permanent tax rate reduction for corporations. As a result, this law may impact both economic performance and your individual bottom line.

If you have any questions about how to prepare for what lies ahead—or want more details on what we expect in 2018—contact us any time.